German media: China calls EU's investigation into JD.com's acquisition "improper extraterritorial jurisdiction"
Chinese authorities stated on Wednesday that the European Union's investigation into China's e-commerce giant JD.com constitutes "improper extraterritorial jurisdiction," ordering all organizations and individuals not to carry out or assist in the related investigation. The EU is concerned that JD.com may have received state subsidies sufficient to distort the EU market.
This statement, issued by China's Ministry of Justice on Wednesday (August 19), marks China's second invocation of the Anti-Counter Extraterritorial Jurisdiction Law. The regulation was introduced this April, expanding China’s toolkit when dealing with entities like the EU. Previously, China had issued a similar order in May when the EU launched an investigation into Nuctech, a Chinese security equipment manufacturer.
On the same day, a spokesperson for China’s Ministry of Justice said that the EU’s “unrestrained demand for extensive and unnecessary information within China from Chinese entities” represents improper demands that seriously undermine international rule of law. He also emphasized, “If the EU persists with unilateral actions, China will take resolute countermeasures in accordance with the law.”
The European Commission initiated an investigation in May under the Foreign Subsidies Regulation regarding JD.com’s proposed €2.5 billion acquisition of German electronics retailer Ceconomy, expressing concern over potential foreign subsidies that could distort the EU market.
At the time, the Commission stated that preliminary findings indicated “JD.com may have received foreign subsidies distorting the EU internal market.” Brussels explained that the investigation would assess whether such subsidies enabled the Chinese company to offer inflated prices for Ceconomy, thereby distorting the outcome of the acquisition. It would also examine whether the subsidy enhanced the competitive position of the merged entity post-deal and whether it would affect competition within the EU internal market.
JD.com responded at the time, asserting that the acquisition would not be financed through subsidies and denying any assistance during the transaction that could lead to market distortion in the EU.
The European Commission must make its final decision no later than October 2, 2024. EU-level approval is one of the necessary conditions for completing the equity transfer.
By the end of June this year, Germany’s Federal Ministry for Economic Affairs had approved JD.com’s acquisition project, but subject to certain conditions, including ensuring adequate protection of German customers’ personal data. Additionally, the German government has been granted broad oversight and control rights, allowing it to revoke the approval should any violations occur in the future.
Source: DW
Original article: toutiao.com/article/1874007319335049/
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